Answer:
1. Paid a cash dividend.
Account Debited: Retained earnings
Account Credited: Cash
2. Paid rent for the next three months.
Account Debited: Prepaid rent
Account Credited: Cash
3. Sold goods to customers on account.
Account Debited: Account receivables
Account Credited: Sales revenue
4. Purchased inventory on account.
Account Debited: Inventory
Account Credited: Accounts payable
5. Purchased supplies for cash.
Account Debited: Supplies
Account Credited: Cash
6. Paid employees wages for September.
Account Debited: Wages payable
Account Credited: Cash
7. Issued common stock in exchange for cash.
Account Debited: Cash
Account Credited: Common stock
8. Collected cash from customers for goods sold in 3.
Account Debited: Cash
Account Credited: Account receivables
9. Borrowed cash from a bank and signed a note.
Account Debited: Cash
Account Credited: Notes payables
10. At the end of October, recorded the amount of supplies that had been used during the month.
Account Debited: Supplies expenses
Account Credited: Supplies
11. Received cash for advance payment from customer.
Account Debited: Cash
Account Credited: Unearned revenue
12. Accrued employee wages for October.
Account Debited: Wages expenses
Account Credited: Wages payable
This outcome of an expansionary period would be considered negative for those living on a
fixed income
Unemployment
Full Employment
Peak
Inflation
Answer:
fixed income
Explanation:
During the expansion business cycle, economic activities are on the increase. Key economic indicators such as employment, incomes, business earnings, demand, and supply of goods and services show positive and progressive numbers. During expansion, the GDP growth rate is healthy, and the level of investment is high.
The expansion phase brings along inflationary pressure. At the peak or near the end of the expansion cycle, the inflation rate is always above the optimal level and sometimes in double digits. A high rate of inflation weakens the purchases power of the local currency. Employees on a fixed income will be disadvantaged. Their income will afford them fewer goods and services compared to the period before expansion.
Bonita Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 18% of sales. The income statement for the year ending December 31, 2014, is as follows.
BONITA BEAUTY CORPORATION
Income Statement For the Year Ended December 31, 2014
Sales $75,000,000
Cost of goods sold
Variable $31,500,000
Fixed 8,610,000 40,110,000
Gross margin $34,890,000
Selling and marketing expenses
Commissions $13,500,000
Fixed costs 10,260,000 23,760,000
Operating income $11,130,000
The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 8% and incur additional fixed costs of $7,500,000.
Under the current policy of using a network of sales agents, calculate the Bonita Beauty Corporation
Answer: $56,040,000
Explanation:
Here is the question:
1.Under the current policy of using a network of sales agents, calculate the Bonita Beauty Corporation's break-even point in sales dollars for the year.
Sales = $75,000,000
Less: variable cost = $75,000,000 + ($75,000,000 × 8%) = $31,500,000 + $6,000,000 = $37,500,000
Contribution margin = $37,500,000
Fixed cost = 10,260,000 + 10,260,000 + 7,500,000 = $28,020,000
Operating income = $11,130,000
Contribution margin = 0.5
Break even point in sales will now be:
= Fixed cost/contribution margin ratio
= $28,020,000/0.5
= $56,040,000
A medical supplies salesperson walks into a hospital administrator's office. The administrator invites the salesperson to sit in a chair directly across the desk from her. Into which space zone is the salesperson being placed
Answer:
Social.
Explanation:
Here the said person is been directed by the administrator to the social wing/angle within the hospital building amongst where the said person can sit and wait to be attended to by a physician, doctor or psychologist.
In the maximum amount as they're seen to be always at the desk ahead of hospitals,
administration isn't just totally their job ad they also bring their education and skill with medical terminology, customer service, and healthcare services to the table furthermore.
This job type can perform a spread of functions and add various roles. Their job title may be anything from a medical office assistant to a patient coordinator or admissions coordinator
A government-owned company may have an unfair advantage over a privately owned company because it could:
Answer:
Government companies may have unfair advantage over private companies, as - financial support from government, public confidence & public capital raise ease
Explanation:
A government-owned company may have an unfair advantage over a private owned company because -
Have financial assistance from government in case of less or non profitability, inefficiency, non performing assets
On the other hand, having more public confidence, public companies are likely to get publically raised capital (through shares, debentures) etc more easily.
Cooperative San José of southern Sonora state in Mexico makes a unique syrup using cane sugar and local herbs. The syrup is sold in small bottles and is prized as a flavoring for drinks and for use in desserts. The bottles are sold for $12 each. The first stage in the production process is carried out in the Mixing Department, which removes foreign matter from the raw materials and mixes them in the proper proportions in large vats. The company uses the weighted-average method in its process costing system.
A hastily prepared report for the Mixing Department for April appears below:
Units to be accounted for:
Work in process, April 1 (materials 90% complete; conversion 80% complete) 5,700
Started into production 34,100
Total units to be accounted for 39,800
Units accounted for as follows:
Transferred to next department 29,400
Work in process, April 30 (materials 70% complete; conversion 50% complete) 10,400
Total units accounted for 39,800
Cost Reconciliation Cost to be accounted for:
Work in process, April 1 $15,276
Cost added during the month 96,248
Total cost to be accounted for $111,524
Cost accounted for as follows:
Work in process, April 30 $20,384
Transferred to next department 91,140
Total cost accounted for $111,524
Required:
a. What were the Mixing Department's equivalent units of production for materials and conversion for April?
b. What were the Mixing Department's cost per equivalent unit for materials and conversion for April? The beginning inventory consisted of the following costs: materials, $10,545; and conversion cost, $4,731. The costs added during the month consisted of: materials, $64,649; and conversion cost, $31,599.
c. How many of the units transferred out of the Mixing Department in April were started and completed during that month?
d. The manager of the Mixing Department stated, "Materials prices jumped from about $1.65 per unit in March to $2.15 per unit in April, but due to good cost control I was able to hold our materials cost to less than $2.15 per unit for the month." Should this manager be rewarded for good cost control?
Answer:
a. EU:
materials = 29,400 + 7,280 = 36,680
conversion = 29,400 + 5,200 = 34,600
b. cost per EU:
materials = $75,194 / 36,680 = $2.05
conversion = $36,330 / 34,600 = $1.05
c. units started and completed during April = 23,700
d. no, he didn't do anything, When a company uses the weighted average process costing method, the cost of beginning WIP is used to determine the cost per equivalent unit. On the other hand, FIFO process costing method doesn't, it only considers costs incurred during the month to calculate cost per equivalent unit.
Explanation:
beginning WIP 5,700 $15,276
materials, $10,545
conversion cost, $4,731
units started 34,100
costs added during the month = $96,248
materials, $64,649
conversion cost, $31,599
units transferred out 29,400 $91,140
ending WIP 10,400 $20,384
materials 70% = 7,280 EU
conversion 50% = 5,200 EU
EU:
materials = 29,400 + 7,280 = 36,680
conversion = 29,400 + 5,200 = 34,600
total cost for materials = $64,649 + $10,545 = $75,194
total cost for conversion = $31,599 + $4,731 = $36,330
cost per EU:
materials = $75,194 / 36,680 = $2.05
conversion = $36,330 / 34,600 = $1.05
units started and completed during April = 29,400 - 5,700 = 23,700
If an investment triples in value in seven years, the rate of return on the investment is nearest to:
Answer: 17%
Explanation:
Note that in the attachment
FV = future value
PV = present value
R = rate
n = number of years
After the calculation the answer is 17%
Kindly check the attachment for further details
If there is a technological advance that lowers the cost of producing x-ray machines, then we can say that the
Answer:
C) quantity supplied of those machines will go up.
Explanation:
the options are missing:
A ) quantity demanded for those machines will increase.
B) demand for those machines will shift right.
C) quantity supplied of those machines will go up.
D) quantity supplied of those machines will decrease.
If production costs decrease, the supply curve will shift to the right, increasing the total quantity supplied while decreasing the sales price. Advances in technology increase productivity, which allows companies to supply a higher amount of goods at lower prices, which in turn increases the total quantity demanded for these goods.
In Coronado Company, total materials costs are $38,000, and total conversion costs are $54,480. Equivalent units of production are materials 10,000 and conversion costs 12,000. Compute the unit costs for materials and conversion costs.
Materials cost per unit:__________ $
Conversion cost per unit:________ $
Compute total manufacturing costs:________ $
Answer:
Materials cost per unit: $3.80
Conversion cost per unit: $4.54
Compute total manufacturing costs: $92,480
Explanation:
Unit Costs = Total Cost ÷ Total Equivalent Units
1. Materials
Unit Cost = $38,000 ÷ 10,000
= $3.80
2. Conversion Costs
Unit Cost = $54,480 ÷ 12,000
= $4.54
Total Manufacturing Costs :
Materials $38,000
Conversion Costs $54,480
Total $92,480
Prepare a bank reconciliation as of October 31 from the following information:
a. The October 31 cash balance in the general ledger is $806.
b. The October 31 balance shown on the bank statement is $350.
c. Checks issued but not returned with the bank statement were No. 462 for $24 and No. 483 for $42.
d. A deposit made late on October 31 for $433 is included in the general ledger balance but not in the bank statement balance.
e. Returned with the bank statement was a notice that a customer's check for $80 that was deposited on October 25 had been returned because the customer's account was overdrawn.
f. During a review of the checks that were returned with the bank statement, it was noted that the amount of Check No. 471 was $65 but that in the company's records supporting the general ledger balance, the check had been erroneously recorded as a payment of an account payable in the amount of $56.
Answer:
Bank Reconciliation Statement as of October 31
Particulars Amount Particulars Amount
Balance as per bank $350 Balance as per books $806
Add: Late deposit $433 Less: Returned checks $80
Less: Outstanding check $66 Less: Error recordings $9
($24+$42) ($65-$56)
Reconciled Balance $717 Reconciled Balance $717
On January 1, 20X8, L Corporation acquired all of the common stock of S Company for $300,000. On that date, S Company's identifiable net assets had a fair value of $250,000. The assets acquired in the purchase of S are considered to be a separate reporting unit of L Corporation. The carrying value of S Company's net assets at December 31, 20X8, is $310,000. The fair value of the reporting unit is determined to be 260,000. Determine the amount, if any, of impairment loss to be recognized at December 31, 20X8.
a. 40,000
b. 50,000
c. 10,000
d. 60,000
Answer:
b. 50,000
Explanation:
According to the given situation, the computation of impairment loss is shown below:-
The Amount of impairment loss to be recognized at December 31, 20X8 is
= Net assets - Fair value of reporting unit
= $310,000 - $260,000
= $50,000
Therefore we applied the above formula to determine the amount of impairment loss to be recognized at December 31, 20X8.
Is there an existential threat of social media?
Answer:
could be
Explanation:
On June 30, 2021, Georgia-Atlantic, Inc. leased warehouse equipment from IC Leasing Corporation. The lease agreement calls for Georgia-Atlantic to make semiannual lease payments of $562,907 over a three-year lease term, payable each June 30 and December 31, with the first payment at June 30, 2021. Georgia-Atlantic's incremental borrowing rate is 10%, the same rate IC uses to calculate lease payment amounts. Amortization is recorded on a straight-line basis at the end of each fiscal year. The fair value of the equipment is $3 million.
Required:
a. Determine the present value of the lease payments at June 30, 2021 that Georgia-Atlantic uses to record the right-of-use asset and lease liability.
b. What pretax amounts related to the lease would Georgia-Atlantic report in its balance sheet at December 31, 2021
Answer:
1. $3,000,000
2. Liability $1,996,041
Asset$2,500,000
Explanation:
1. Calculation to Determine the present value of the lease payments at June 30, 2021
Present value of lease payments will be calculated as : $562,907 × 5.32948
(Present value of an annuity due of $1:
n = 6, i = 5% is 5.32948)
Present value of lease payments = $3,000,000
Therefore the Present value of lease payments will be $3,000,000
2. Calculation to Determine the pretax amounts related to the lease that Georgia-Atlantic would report in its balance sheet at December 31, 2021
Liability at December 31, 2021
Initial balance, June 30, 2021 3,000,000
June 30, 2021 Reduction(562,907)
Dec. 31, 2021 reduction (441052)
[562,907-(3,000,000-562,907)*5%]
December 31, 2021 NET LIABILITY $1,996,041
ASSETS at December 31, 2021
Initial balance, June 30, 2021 3,000,000
Accumulated depreciation at Dec. 31, 2021 (500,000)
(3000000/3*1/2)
December 31, 2021 ASSETS $2,500,000
Therefore the pretax amounts related to the lease that Georgia-Atlantic would report in its balance sheet at December 31, 2021 will be : Liability $1,996,041
Asset$2,500,000
Company manufactures car seats in its plant. Each car seat passes through the assembly department and testing department. This problem focuses on the testing department. Direct materials are added when the testing department process is % complete. Conversion costs are added evenly during the testing department's process. As work in assembly is completed, each unit is immediately transferred to testing. As each unit is completed in testing, it is immediately transferred to Finished Goods. Company uses the weighted-average method of process costing. Data for the testing department for October are as follows:
Physical Units (Car Seats) Direct Materials Conversion Costs
Work-in-process, October 1 *a 5,000 $1,250,000 $402,750
Started during October 20,000
Completed during October 22,500
Work-in-process, October 31 *b 2,500
Total costs added during October $4,500,000 $2,337,500
Required:
What is the percentage of completion for:
a. Transferred-in costs and direct materials in beginning work-in-process inventory.
b. Transferred-in costs and direct materials in ending work-in-process inventory
Answer:
a. Beginning Work-In Process inventory
Transferred in Costs = 100%
All the transferred in costs will be accounted for in beginning Work-In Process inventory
Direct Materials = 0%
Conversion costs are not up to 90% so no Direct materials will be added.
b. Ending Work-In Process Inventory
Transferred in Costs = 100%
All the transferred in costs will be accounted for in ending Work-In Process inventory
Direct Materials = 0%
Conversion costs are not up to 90% so no Direct materials will be added.
Chance company had two operating divisions, one manufacturing farm equipment and other office supplies. Both divisions are considered separate components as defined by generally accepted accounting principles. The farm equipment component had been unprofitable, and on Sept. 1, 2016, the company adopted a plan to sell the assets of the division.
The actual sale was completed on Dec. 15, 2016, at the price of $600,000. The book value of the division's assets was $1,000,000, resulting in a before-tax loss of $400,000 on the sale. The division incurred a before-tax operating loss from operations of $130,000 from the beginning of the year through Dec. 15. The income tax rate is 40%. Chances after-tax income from its continuing operations is $350,000.
Required:
Prepare an income statement for 2016 beginning with income from continuing operations. Include appropriate EPS disclosures assuming that 100,000 shares of common stock were outstanding throughout the year.
Answer:
-21,000
Explanation:
We can calculate the net income by Adding/deducting the gain/loss on the discontinued operations from the gain/loss of the continuing operations.
INCOME STATEMENT
Income from continuing Operations $350,000
Discontinued Operations
Loss from discontinued operations(w) -530,000
Income tax benefit $159,000
(400,000+130,000) x 30%
Net Income -21,000
Earning per share
Continuing Operations $3.5
(350,000/100,000)
Discontinued Operations -$5.3
(-530,000/100,000)
Net Income -$1.8
Working
Sale value of the segment $600,000
Book value of the segment ($1,000,000)
loss on sale of segment -$400,000
Loss from the Operations of the segment -$130,000
Loss on discontinued operation -$530,000
Apart from the internet, which encourages customers to reach out to a business or brand, use of other advertising vehicles refers to________ marketing
Answer: Television
Explanation:
, thought it was direct marketing earlier, but it was not
Which of the following is not a true statement about filing bankruptcy? a. Bankruptcy erases all of your debt. b. It is possible to rebuild your credit after filing bankruptcy. There are exemptions that alloW you to keep essentials. d. Bankruptcy stops aggressive action by creditors
The statement that is not true about bankruptcy is that Bankruptcy erases all of your debt. Option A is correct.
What is bankruptcy?Bankruptcy is a legal process or procedure that involves a person or business that is unable to repay its outstanding debts.
The bankruptcy methodology starts with a requisition or petition that is pointed by the debtor, which is most expected, or on behalf of creditors, and which is less common.
After filing bankruptcy, it is possible to rebuild credit after filing bankruptcy of a debtor, and there are certain waivers that allow maintaining the requirements.
Bankruptcy prevents assertive action by creditors, and it does not mean that it erases all of your debt.
Therefore, option A is correct.
Learn more about bankruptcy, refer to:
https://brainly.com/question/1142634
Answer:
A
Explanation:
Which of the following is not a true statement about filing bankruptcy?
a.
Bankruptcy erases all of your debt.
b.
It is possible to rebuild your credit after filing bankruptcy.
c.
There are exemptions that allow you to keep essentials.
d.
Bankruptcy stops aggressive action by creditors.
A
. Calculate the cost of the raw material (Gilden) purchases by month and in total, for the third quarter.
Question attached
Answer and Explanation:
Please find attached
During 2020, PC Software Inc. developed a new personal computer database management software package. Total expenditures on the project were $3,000,000, of which 40% occurred after the technological feasibility of the product had been established. The product was completed and offered for sale on January 1, 2021. During 2021, revenues from sales of the product totaled $4,800,000. The package is expected to be successfully marketable for five years, and the total revenues over the life of the product are estimated to be $20,000,000.
Required
A. Prepare the journal entry to account for the development of this product in 2020.
B. Prepare the journal entry to record the amortization of capitalized computer software development costs in 2021.
C. What disclosures are required in the December 31, 2021, financial statements regarding computer software costs?
At December 31, 2021, the unamortized software intangible asset totals ______. This is equal to _____ originally capitalized less amortization in 2021 of _______. The amount charged to expense as amortization of software intangible asset in 2021 was ______. The estimated net realizable value of computer software is greater than the remaining unamortized software intangible asset.
Answer:
PC Software Inc.
A. Journal Entry to account for the development of software in 2020:
Debit Software $1,200,000
Debit Development Expenses $1,800,000
Credit Cash Account $3,000
To capitalize 40% software development costs.
B. Journal Entry to amortize Capitalize Computer Software Development in 2021:
Debit Amortization Expense $240,000
Credit Accumulated Amortization - Software $240,000
To record the amortization of the capitalized software.
C. At December 31, 2021, the unamortized software intangible asset totals _$960,000_____. This is equal to _$1,200,000____ originally capitalized less amortization in 2021 of _ $240,000______. The amount charged to expense as amortization of software intangible asset in 2021 was _$240,000_____. The estimated net realizable value of computer software is greater than the remaining unamortized software intangible asset.
Explanation:
PC Software Inc. must follow the US GAAP rule, which states that the development costs incurred for an internally-generated software development are capitalized only when it is probable that the development is commercially feasible. Based on this, only 40% of the software expenditures are capitalized.
Tawna Reed was hired for a top managerial position in Nike Corporation because she had creative ability and a good overall feel for the athletic shoe industry. Reed is said to have good _____ skills.
Answer:
C) conceptual.
Explanation:
Conceptual skills are essential in managers of large companies, such as that of the multinational Nike.
This ability means that the manager has a vision of the organization as an integrated system, where each part has its relevance in the organizational whole and must be considered in the processing, evaluation and planning of the strategies that will lead to organizational success.
Having conceptual skills means having the skills to have a diffuse and analytical thinking of the organization and all the parts that involve it, which makes the entire management decision-making process much more efficient and aligned with the organization's objectives and goals.
ogan Products computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 40,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $466,000 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $3.00 per direct labor-hour. Logan's actual manufacturing overhead for the year was $713,400 and its actual total direct labor was 41,000 hours.
Required:
Compute the company's pre-determined overhead rate for the year.
Answer:
Predetermined manufacturing overhead rate= $14.65 per direct labor hour
Explanation:
Giving the following information:
Estimated direct labor hours= 40,000
Estimated fixed overhead= $466,000
Estimated variable overhead rate= $3.00 per direct labor-hour.
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (466,000/40,000) + 3
Predetermined manufacturing overhead rate= $14.65 per direct labor hour
Luke offered to sell his farm to Kent at $75,000, an offer which Kent declined. A week later, Luke offered to sell the farm for $65,000, stating that it was the final offer, it was valid for one month, and that he would not alter it. Two days later, Kent replied by saying that he was willing to pay $60,000 for the farm. A week after Luke received Kent's offer, Luke declined it. Ten days after that, Kent agreed to buy the farm for $65,000, but Luke refused to sell the farm. Kent decided to sue Luke for a breach of contract. The judge ruled in favor of Luke. Which one of the following is the reason for the ruling in Luke's favor?
a. Luke's original offer of $75,000 is still valid, even though rejected.
b. Kent acted in an incompetent manner with regards to the offer.
c. Kent's acceptance was past the set time period in the offer.
d. Kent's counteroffer of $60,000 had rendered the offer for $65,000 invalid.
Answer:
Option D
Explanation:
Kent's counteroffer of $60,000 had rendered the offer for $65,000 invalid
Reason- Whenever a counteroffer is made, it voids the earlier offers That's because real estate laws in all 50 states say that a seller who makes a written counteroffer automatically renders the buyer's original offer null and void.
Match the qualitative characteristics below with the following statements.1. Timeliness2. Completeness3. Free from error4. Understandability5. Faithful representation6. Relevance7. Neutrality8. Confirmatory valuea. Quality of information that assures users that information represents the economic phenomena that it purports to represent.b. Information about an economic phenomenon that corrects past or present expectations based on previous evaluations.c. The extent to which information is accurate in representing the economic substance of a transaction.d. Includes all the information that is necessary for a faithful representation of the economic phenomena that it purports to represent.e. Quality of information that allows users to comprehend its meaning.
Answer:
1. Comparability.
2. Predictive value.
3. Free from error.
4. Completeness.
5. Faithful representation.
Explanation:
a. Comparability: Quality of information that assures users that information represents the economic phenomena that it purports to represent.
b. Predictive value: Information about an economic phenomenon that corrects past or present expectations based on previous evaluations.
c. Free from error: The extent to which information is accurate in representing the economic substance of a transaction.
d. Completeness: Includes all the information that is necessary for a faithful representation of the economic phenomena that it purports to represent.
e. Faithful representation: Quality of information that allows users to comprehend its meaning
Deferral adjustments are needed when the business:
a. Pays cash after the expense has been incurred.
b. Unanswered pays cash before the expense has been incurred.
c. Unanswered receives cash after the revenue has been generated.
d. Unanswered receives cash before the revenue has been generated.
Answer:
The correct answers are the options B and D: Pays cash before the expense has been incurred. And receives cash before the revenue has been generated.
Explanation:
To begin with, in the accounting field the term of "Deferral Adjustments" refers to those that the accountant does when they postpone the report of it in the income statement until a later period, so that means that when an event happens they might decide to postpone the report of that particular transaction doing what it is called "defer". Moreover, the two most common cases when the accountants use this technique are the ones choosen from the options, the cases B and D.
Rutgers Racquet Club adjusts its accounts monthly. Club members pay their annual dues in advance by January 15. The entire amount is initially credited to Unearned Membership Dues (a liability account). At the end of each month, an appropriate portion of this amount is credited to Membership Dues Earned. Guests of the club members normally pay a court rental fee before being allowed to play. The amounts collected are credited to Court Rental Revenue at the time of receipt. Certain guests are billed for court rental fees at the end of the month. The following information can be used for preparing adjusting entries at December 31, 20x5:
1. Salaries earned by club employees that have not yet been recorded or paid amount to $3,700.
2. A local VFW sponsored a tournament at Rutgers Racquet Club that took place on December 22, 20x5 of the current year. At December 31, the $1,200 owed by the VFW for court rentals on December 22 had not yet been recorded or billed.
3. A one-year fire and flood insurance policy had been purchased on May 31. The entire premium of $7,200 was initially recorded as Prepaid Insurance.
4. Rutgers Racquet Club was built in 20x1. The cost of the building and equipment was $320,000. Depreciation of the club's building and equipment is based on an estimated life of 20 years and a salvage value of $80,000. The straight-line method of depreciation is used.
5. A 36-month bank loan in the amount of $108,000 had been obtained by Rutgers Racquet Club on December 1, 20x5. Interest is computed at an annual rate of 9%. The entire $108,000, plus all of the interest accrued over the 36-month life of the loan, is due in full on December 1, 20x8.
6. Membership dues earned in December, 20x5 for collections received at January 15, 20x5 amounts to $52,000.
7. Unrecorded Income Taxes Expense accrued in December amounts to $16,000. This amount will not be paid until January 15, 20x6.
Required:
For each of the items above, prepare the necessary adjusting entry at December 31, 20x5.
Answer:
1. Salaries earned by club employees that have not yet been recorded or paid amount to $3,700.
Dr wages expense 3,700
Cr wages payable 3,700
2. A local VFW sponsored a tournament at Rutgers Racquet Club that took place on December 22, 20x5 of the current year. At December 31, the $1,200 owed by the VFW for court rentals on December 22 had not yet been recorded or billed.
Dr accounts receivable 1,200
Cr rental fees 1,200
3. A one-year fire and flood insurance policy had been purchased on May 31. The entire premium of $7,200 was initially recorded as Prepaid Insurance.
Dr insurance expense 4,200
Cr prepaid insurance 4,200
4. Rutgers Racquet Club was built in 20x1. The cost of the building and equipment was $320,000. Depreciation of the club's building and equipment is based on an estimated life of 20 years and a salvage value of $80,000. The straight-line method of depreciation is used.
Dr depreciation expense 12,000
Cr accumulated depreciation, building 12,000
5. A 36-month bank loan in the amount of $108,000 had been obtained by Rutgers Racquet Club on December 1, 20x5. Interest is computed at an annual rate of 9%. The entire $108,000, plus all of the interest accrued over the 36-month life of the loan, is due in full on December 1, 20x8.
Dr interest expense 810
Cr interest payable 810
6. Membership dues earned in December, 20x5 for collections received at January 15, 20x5 amounts to $52,000.
Dr unearned membership dues 52,000
Cr membership dues earned 52,000
7. Unrecorded Income Taxes Expense accrued in December amounts to $16,000. This amount will not be paid until January 15, 20x6.
Dr income tax expense 16,000
Cr income tax payable 16,000
Traditional IRA grows tax free?
True or False
Answer:
True
Explanation:
Theresa works as a Risk Management Specialist for an investment corporation. Which best describes her educational pathway?
A. an associate’s degree, then a bachelor’s degree
B. a master’s degree, then vocational school
C. vocational school, then an associate’s degree
D. a bachelor’s degree, then a master’s degree
Answer:
The answer is b
Explanation:
i'm doing the unit test right now
Answer:
I feel that the correct answers is D because to become a Risk Management Specialist you must have a bachelors in business and most likely a master.
Explanation:
What aspect does line weight represent? A. angle of a line B. color of a line C. length of a line D. thickness of a line
Answer:
D
Explanation:
On December 1, year 1, Lester Company issued at 103, four hundred of its 9%, $1,000 bonds. Attached to each bond was one detachable stock warrant entitling the holder to purchase 10 shares of Lester's common stock. On December 1, year 1, the market value of the bonds, without the stock warrants, was 95, and the market value of each stock purchase warrant was $50. The amount of the proceeds from the issuance that should be accounted for as the initial carrying value of the bonds payable would be:______
a. $387,280.
b. $391,400.
c. $400,000.
d. $412,000.
Answer:
Lester Company
The amount of the proceeds from the issuance that should be accounted for as the initial carrying value of the bonds payable would be:______
c. $400,000.
Explanation:
Bonds issued at 103, 9% $1,000
Number of bonds issued = 400
Face value of bonds = $1,000 * 400 = $400,000
Proceeds from Bonds = $1,030 * 400 = $412,000
Premium from bonds issue = $12,000 ($412,000 - 400,000)
Carrying amount = $400,000
$400,000 is the bonds payable at maturity. The $12,000 bonds premium will be amortized with the interest expense. This implies that for the life of the bonds, part of the $12,000 will be deducted from the annual interest expense.
Major League Bat Company manufactures baseball bats. In addition to its work in process inventories, the company maintains inventories of raw materials and finished goods. It uses raw materials as direct materials in production and as indirect materials. Its factory payroll costs include direct labor for production and indirect labor. All materials are added at the beginning of the process, and conversion costs are applied uniformly throughout the production process. Required: You are to maintain records and produce measures of inventories to reflect the July events of this company. The June 30 balances: Raw Materials Inventory, $22,000; Work in Process Inventory, $9,690 ($2,810 of direct materials and $6,880 of conversion); Finished Goods Inventory, $140,000; Sales, $0; Cost of Goods Sold, $0; Factory Payroll Payable, $0; and Factory Overhead, $0. 1. Prepare journal entries to record the following July transactions and events. Purchased raw materials for $130,000 cash (the company uses a perpetual inventory system). Used raw materials as follows: direct materials, $52,540; and indirect materials, $11,500. Recorded factory payroll payable costs as follows: direct labor, $206,000; and indirect labor, $26,500. Paid factory payroll cost of $232,500 with cash (ignore taxes). Incurred additional factory overhead costs of $83,000 paid in cash. Allocated factory overhead to production at 50% of direct labor costs. 2. Information about the July inventories follows. Use this information with that from part 1 to prepare a process cost summary, assuming the weighted-average method is used. (Round "Cost per EUP" to 2 decimal places.) Units Beginning inventory 6,500 units Started 14,000 units Ending inventory 8,000 units Beginning inventory Materials—Percent complete 100 % Conversion—Percent complete 80 % Ending inventory Materials—Percent complete 100 % Conversion—Percent complete 30 % 3.
Using the results from part 2 and the available information, make computations and prepare journal entries to record the following: Total costs transferred to finished goods for July. Sale of finished goods costing $273,200 for $640,000 in cash.Using the results from part 2 and the available information, make computations and prepare journal entries to record the following: Total costs transferred to finished goods for July. Sale of finished goods costing $273,200 for $640,000 in cash. Using the results from part 2 and the available information, make computations and prepare journal entries to record the following: Total costs transferred to finished goods for July. Sale of finished goods costing $273,200 for $640,000 in cash.
Answer:
Major League Bat Company
1. Journal Entries:
a. Debit Raw Materials Inventory $130,000
Credit Cash Account $130,000
To record the purchase of raw materials.
b. Debit Work in Process $52,540
Debit Manufacturing Overhead $11,500
Credit Raw Materials $64,040
To record materials used.
c. Debit Factory Wages $232,500
Credit Cash Account $232,500
To record factory payroll paid in cash.
d. Debit Work in Process $206,000
Debit Manufacturing Overhead $26,500
Credit Factory Wages $232,500
To record factory payroll costs.
e. Debit Manufacturing Overhead $83,000
Credit Cash Account $83,000
To record additional factory overhead costs.
f. Debit Work In Process $103,000
Credit Manufacturing Overhead $103,000
To allocate factory overhead to production at 50% of direct labor costs.
2. Computation of Equivalent Units of Production:
Materials Conversion Total
Beginning inventory 6,500 units 6,500 5,200
Started 14,000 units 14,000 14,000
Ending inventory 8,000 units 8,000 2,400
Total equivalent unit 22,000 16,400
3. Costs of Production:
Beginning Inventory $2,810 $6,880
Raw materials 52,540 309,000
Total costs $55,350 $315,880
Total equivalent unit 22,000 16,400
Cost per equivalent unit $2.52 $19.26
Total costs:
Started 14,000 $35,280 14,000 $269,640 $304,920
Ending inventory 8,000 20,160 2,400 46,224 $66,384
Total 22,000 $55,440 16,400 $315,864 $371,304
4. Journal Entries:
Debit Finished Goods Inventory $304,920
Credit Work In Process $ 304,920
To record the transfer of goods.
Debit Cost of Goods Sold $273,200
Credit Finished Goods Inventory $273,200
To record the cost of goods sold.
Debit Cash Account $640,000
Credit Sales Revenue $640,000
To record the sale of goods for cash.
5. Ledger accounts:
Raw Materials Inventory
Accounts Titles Debit Credit
Balance $22,000
Cash Account 130,000
Work in Process $52,540
Manufacturing Overhead 11,500
Work In Process
Accounts Titles Debit Credit
Balance $9,690
Raw materials 52,540
Factory Wages 206,000
Manufacturing
Overhead 103,000
Finished Goods Inventory $ 304,920
Balance 66,384
Manufacturing Overhead
Accounts Titles Debit Credit
Raw materials $11,500
Factory wages 26,500
Other overheads 83,000
Work in Process applied $103,000
Underapplied overhead 18,000
6. Income Statement:
For July
Sales Revenue $640,000
Cost of goods sold 273,200
Underapplied overhead 18,000 $291,200
Gross profit $348,800
Explanation:
a) Data and Calculations:
June 30 Balances:
Raw Materials Inventory, $22,000;
Work in Process Inventory, $9,690 ($2,810 of direct materials and $6,880 of conversion);
Finished Goods Inventory, $140,000;
Sales, $0;
Cost of Goods Sold, $0;
Factory Payroll Payable, $0; and
Factory Overhead, $0. 1.
What are some of the government requirements imposed on a public corporation that are not imposed on a private, closely held corporation? Discuss pros and cons of each
Answer:
The government (the SEC) imposes several regulations on publicly traded corporations and requires mandatory reporting regarding their financial position, compensation to key employees, auditing and accounting procedures, conflicts of interest between upper management and shareholders, operating results, etc.
The pros of that large amount of reports is that it makes management accountable for what happens and it makes their job more transparent.
The downside is that they are expensive and time consuming.
On the other hand, privately held corporations decide what to disclose to the general public or the government. The IRS is something that cannot be avoided, but the SEC and its scrutiny is avoided.
Other advantages of publicly held corporations:
a publicly held corporation should be able to raise larger amounts of capitalsince the number of owners is larger, debt per ownership stake is generally much lowertop management tends to be more independent and suffer less pressures from individual stockholderspublicly trades corporations tend to receive more publicity and are better knownthey also attract more talentOther disadvantages of publicly held corporations:
publicly held corporation have a lot of owners and they all have the right to be informed about what happens within the corporation and vote to elect the board of directorssome decisions require that shareholders vote on them, e.g. mergersstock prices suffer from market riskgoing public is also expensive